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November 16, 2005
US borrowing continues - growing the sharecropper society
This from the Financial Times - "Foreign buying of US assets rises to record":
Foreign investors poured a record $101.9bn into US assets in September, according to Treasury data which eased market concerns that any fading demand for dollar assets could undermine the US currency's value.
. . .
The bulk of the $101.9bn flowed into US bond markets, including Treasuries, but economists said a surge in inflows into equities was encouraging since it indicated a possible broadening of investor interest which should support future inflows and leave the dollar less dependant on demand for bonds.
The good news: foreign investors continue to lend the US money to cover our deficits (trade and budget) - meaning the economy won't immediately crash.
The bad news: foreign investors continue to lend the US money to cover our deficits (trade and budget) - meaning that we owe more and more (principle and interest) to foreign investors and continue our trek to what Warren Buffet calls the "sharecropper society".
Posted by Ken Jarboe at November 16, 2005 10:35 AM
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